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San Francisco 9, California 4, Cca 3, San Franciscans 2, Marin 2, Torres 2, Barbara Hale 2, California Public Utilities Commission 2, Puc 2, Mr. Kelly 1, Pimentel 1, Avalos 1, Olague 1, John Avalos 1, Moran Commissioner Caen 1, Sandy 1, Har 1, Cupuc 1, Us 1, America 1,
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  SFGTV    [untitled]  

    November 30, 2012
    11:00 - 11:30am PST  

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>> good morning and welcome to the local agency formation commission as a joint meeting with the public utilities commission. my name is chair avalos, john avalos chair of the lafco. i am joined by other lafco members, commissioner olague and commissioner pimentel. this is a joint committee so i will pass on the mic on our chair from the public utilities commission. >> yes, art torres member of puc and other members. thank you very much for being here. we make a very legionary and strong quorum on this rainy day. >> okay. >> and of course our general manager is here as well, har an kelly and the staff of the puc.
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>> thank you. i want to thank sfgtv for their work broadcasting this meeting, and madam clerk if you could chair with us your announcements. >> please make sure to silence all electronic devices. speaker cards and any documents should be submitted to the clerk. >> okay. do you want to call the roll? you call the roll on puc. >> yes. >> president torres. >> here. >> commissioner. >> here. >> commissioner moran commissioner caen and cortni are both excused from today's meeting. >> okay. that serves as items one and two. let's call our hird item. >> third item opening remarks and expectations for the joint meeting. >> okay. actually let's just call -- let's just call items
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four and five along with that and we can have our opening remarks that will cover all these items. >> item four is general update on the cleanpower sf. item five is discussion on the san francisco public utilities commission and for the education plans for the choice aggregation and cleanpower sf program. >> okay. very good. colleagues it's a really as president torres as said it's a momentous occasion, historic occasion we had. we improved our relationship with shell and the allocation for the cleanpower sf and we're looking how the power can be maximized in the next year as we in fact the process of enrollment. i've actually believe that the timing of this could not be anymore -- anymore important to do today because of our global climate change that
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is happening, and i believe that we're seeing -- actually on the way here today i was listening to the radio. there was a report on democracy now that a portion of our artic ice about the size of the united states of america had melted this year which is significant to really alter what the temperature of the ocean is and we're seeing what really the impact of -- every year we're seeing dramatic examples of climate change and hurricane sandy being one of them. we're also seeing around the world real demographic changes in our country. there is accumulation of population under urban areas and we have to look at those areas where we meet the challenge of climate change so we have to look at promise of our cities. san francisco bay area is a city
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that has great resources to meet the challenges of global climate change. this program, the cleanpower sf program is what we have. it's our greatest tool to assure we're doing our part around climate change around the world, and this little area of the world can actually make a huge difference, and that's what we have to decide how we're going to implement over the next few months, but the major work that we have actually accomplished by green lighting this program to move forward. i want to also emphasize that while we're actually implementing a program addressing our part with climate change and creating the clean power program in san francisco we're meeting a program that meets the needs of the city, not just around clean energy but employment and if we're successful in this program, and especially to the build out of
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the program that can happen when we have revenue coming in and many jobs can come with the build out and i am excited about that. there are neighbors in san francisco that are greatly impacted by unemployment, greatly impacted by marginalization and racism and inability to access the job market and this can lead the way that we have a strong implementation of programs and services to support communities that are in need of opportunity, so i'm very xietded about how we can move forward with this program, and i will actually cede the mic to the president of the commission. any opening remarks about today's -- >> i can't add more to that articulate overview and i support it and thank you to the commissioners that preceded me and the staff and the now general manager as well for
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their contributions during that process. thank you mr. chairman. >> thank you. today we will be discussing the customer notification and the education plan. i think it's the bulk of the work before us to look at that plan and see if it meets the needs moving forward. who is presenting on that from the puc? we will provide the general update of the cleanpower sf program. >> barbara hale will give an update. >> thank you mr. herring -- mr. kelly, sorry. thank you, i am barbara hale, assistant general manager for power. by way of updates item four i just wanted to remind you in your packets is a detailed timeline for implementation of our cca program. we also are in
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working constructively with lafco in their advisory role to the board in implementation our cca program we are operating under a memorandum of understanding with lafco that describes the roles and responsibilities of our respective staff and we expect that as we get to actual program launch we will come back to you with a new mou that describes our ongoing relationship at the time. the mou we're operating under this point is expired but i think we're both comfortable to serve those roles until the program takes better shape and we can then revisit roles and responds with that information in hand. then the other item i wanted to make mention of by way of update is some of our activities at the california public utilities commission. we did go forward with the filing of our revised
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implementation agreement, implementation plan at the california public utilities commission. it is under review there and we expect it to be certified by their executive director before the -- by january. we have seen a proposed decision from the california public utilities commission that implements the provisions of the cca code of conduct that were adopted in legislation, sponsored by senator leno, so we expect that proposed decision to become final in the next 30 to 60 day time period so we will have clarity on those rules of engagement are before we launch our program, and we are closely monitoring the green tariff pricing proposal that pg&e sprited to the california puc for approval. that is the program when it was initially
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proposed by pg&e would have pg&e offering to san franciscans an opportunity for 100% renewable product that is greening up their portfolio to using renewable energy credits, so they have placed a proposal before the california puc for -- their agreement. parties are engaged in asking questions, testimony has been filed. the cupuc had scheduled hearings in december for the proposal, but those hearings on hold in order to allow parties to talk further and potentially arrive at a settlement. there really isn't active settlement discussion under way right now. we expect that may happen in january, and if you play out that process we think that maybe july or august
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of 2013 we will know what shape the program that pg&e has proposed has been authorized by the cupuc. pg&e would then as i understand it from their filings need to go through a solicitation process to hire a third party contractor to perform the program implementation and we're thinking it would probably be a tariffed and ready program by maybe around february of 2014. that's all very tentative at this point because as i say it sorts of makes assumptions how that process is going to go with the cupuc, but at this point they're anticipating settlement and proposed decision. >> ms. hale could you elaborate about the code of conduct? what are the elements of that? if you could summarize what is before the puc with that? >> i can and we have city
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attorney here who is also familiar with this and perhaps could fill in some of the gaps for me. the code of conduct largely came out of the -- the law that created the code of conduct requirement came out of the experience that pg&e and marin energy had when marin energy launched its program so the code of conduct puts certain restrictions on both parties, the utility, in our case pg&e and on us as a cca. broadly speaking it prohibits either party from misleading customers. it requires that any expenditures that pg&e incurs to actively market against the program cannot be reimbursed by rate payers and shared by shareholders. it allows pg&e
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to answer questions and educate about their program and how it compares to our program. it requires both parties to work with the california public utilities commission public advisor's office to create a comparison document that would be made able by all parties on the two program offerings. so that gives you some of the key elements. >> and the code of conduct you said is in the process of being approved or is approved. >> so a proposed decision was drafted and sent out for comment by the cupuc staff. it then by state statute sits before the body for not less than 30 days before the commission may adopt, hold, or modify and then adopt the item. >> very good. do we expect that the way it is now to change
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dramatically? that some of the restrictions could be challenged? >> comments on that proposed decisions have not yen yet submitted. my guess it won't be changed dramatically. >> okay. thank you. >> >> you're welcome and if it's pleases the chairs i will move on to number five, the customer education program presentation. >> okay. >> so what i have before you and on the screen if sfgtv could help. thank you. a program description of our customer notification and education plan. this is our plan as conceived to ensure that we are very responsive to the direction we received from the board, the commission, the mayor to make sure that we are really
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educating our potential customers and not having any accidental customers or gotcha customers enrolled in the program given it's an opt out program so what we're asking for today is an opportunity to present that program to you, to get your guidance, and to ultimately if it pleases the public utilities commission to receive their endorsement on the overall framework of this plan. what you see on the screen here is the overall program elements. i'm going to dive a little bit more deeply into each of these as we go through the presentation and i am happy to take questions throughout. so beginning here in the quarter we're in right now we have, just as a reminder over the last three years under taken a extensive outreach program to the community here in san francisco. it's been a multilingual effort and retail in terms of face-to-face
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engagement. it's been fliers and multi-media so far, and what we came out from that effort of gathering information and engaging with customers, potential customers, are there's findings that have shaped our cleanpower sf program offering and that is that san franciscans will pay a premium for a premium product, that 100% renewable product. we have a geographic understanding of the customers most interested in cleanpower sf and those are the customers we propose to focus on in the first phase as we roll the program out and we are anticipating there is sufficient interest in those areas to offer about a 20 to 30 mega watt program here in san francisco. this map shows you the interest or the propensity
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to stay with the program as we roll it out. with the darker green showing the most interested, most likely to stay customer locations, so you can see it's fairly concentrated, and a broad enough area to encompass about 20 to 30-megawatts of san francisco load, so that's really our first target audience , so within the fourth quarter we have this input to this point and looking for endorsement and your comfort level with the plan that is detailed in your packet, and then i will go through. a key part of our program is to make sure that customers understand
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the financial impacts if they choose to stay with cleanpower sf, so what we're showing you here on this slide is the tier by tier impact, and those are tiers that your build by pg&e on, and the tiers reflect how much you consume. most san francisco households are in tier one, that first row, and if you stay with me on tier one you will see that we're projecting customers -- electric portion of their pg&e bill to be around $21.97 in 2013. if they stay with our program and the 100% green product it includes they will see a premium of $11.54 they need to pay for that product offering so that their
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average electric portion of their bill will be about $33.50. that represents about 52-point 5% increase on the electric portion of pg&e bill in san francisco, and about a 29% premium on the total pg&e bill a customer receives each month. this is updated information based on the guidance we got from and the direction we got from the board of supervisors to make sure that our rates recover the low -- the subsidy to low income customers and to ensure our rates recover the -- begin to recover at least the financial collateral the city has applied, the security -- the city has applied to this program, so these are new